Entry archive:

The U.S. benchmark index rose to a fresh five-year high on Friday, after a smaller-than-expected trade deficit pointed to stronger economic activity in the fourth quarter and European leaders agreed to a seven-year budget.

The S&P 500 closed at 1517.93, up 8.54 points or 0.6 per cent. The blue-chip Dow Jones industrial average closed at 13,992.97, up 49.15 points or 0.4 per cent – after briefly rising above 14,000 earlier in the day. In Canada, the S&P/TSX composite index closed at 12,801.23, up 45.31 points or 0.4 per cent.

Trading volumes were relatively low because of the winter storm battering the U.S. northeast.

The U.S. trade deficit fell to $38.5-billion (U.S.) in December, a much steeper drop than expected, which points to economic growth in the fourth quarter when revised figures are released. A preliminary reading showed a contraction of 0.1 per cent.

China’s trade surplus in January was bigger than expected, with exports rising 25 per cent over last year.

In Europe, EU leaders agreed to a seven-year budget that entails the region’s first-ever spending cuts.

Among U.S. stocks, LinkedIn Corp. surged 21.3 per cent, to a record high of $150.48, after reporting income (excluding some extraordinary items) of $40.2-million or 35 cents a share, topping expectations.

Boeing Co. fell 1.1 per cent after it warned two European airlines that deliveries of its 787 Dreamliner would be delayed as it works with regulators to determine a solution to onboard fires that have grounded its fleet of new airliners.

Restrictions

All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in Thomson Reuters content, or for any actions taken in reliance on such content. ‘Thomson Reuters’ and the Thomson Reuters logo are trademarks of Thomson Reuters and its affiliated companies.